High rent closed downtown Pismo Beach coffee shop, owner says — but he has plans for new spot

Kraken Coffee Co. has closed its downtown Pismo Beach coffee shop — but its owner plans to return in the spring in a new location.

Owner James Whitaker said the closure was because of high rent from the Inn at the Pier, which shares the building that housed the coffee shop at 172 Pomeroy St.

He said he plans to instead bring Kraken back to Pismo Beach in a new location in the coming months, calling it a “long-term strategy play.”

“It just makes sense for us to move it to a location that has market rent, not double market rent,” he said.

In an online listing for the space by Lee & Associates Commercial Real Estate Services, the asking price for the 1,130 square foot unit was $7.05 per square foot per month.

The group described the space as “one of the most prominent retail locations available for lease in Pismo Beach.”

On Monday, the unit had a “for lease” sign posted in its window. The inside of the shop was cleared out of all machinery and furniture, leaving only the brand’s signature logo painted on the wall.

Whitaker said he had placed a sign on the old location’s window stating “Pismo is closing for the winter. We’ll see you in the spring,” but as of Monday that sign was no longer on the window.

The Pismo Beach Kraken opened in 2019. At the time, Whitaker said he wanted to expand his coffee shop brand on the coast.

“We love having a coffee shop on the beach and thought two is better than one,” Whitaker told The Tribune in July 2019.

The brand’s first location at 310 Front St. in Avila Beach remains open. That shop opened in 2017, boasting “killer views” and locally roasted beans, according to its website and Instagram.

Kraken Coffee Co. is open in Avila Beach seven days a week from 7 a.m. to 3 p.m.

Whitaker also co-owns downtown San Luis Obispo coffee shop Kreuzberg California at 685 Higuera St. and Batch Old Fashioned Ice Cream at 1108 Broad St. — the latter of which has been closed for several years, though notices on its website say the cookie and ice cream shop is “reopening soon.”